U.S. files new WTO complaint over state subsidies to Airbus

The U.S. set out its claims that European government spending on Airbus to develop new aircraft is illegal, fixing for the first time a deadline for a World Trade Organization (WTO) decision on the fight with Boeing.

The U.S. says Airbus has benefited from risk-free grants worth $23 billion over the past four decades. In September 2004, the U.S. asked WTO judges to find that the financing violates global subsidies rules. Wednesday's filing means an initial, confidential decision in the case is scheduled for next September.

The EU and U.S. filed counter-cases in 2004 over aid given to Airbus and Boeing. Together, the cases are the largest ever to go before the WTO.

Wednesday's confidential submission "demonstrates that subsidization of Airbus by the EU is inconsistent" with WTO rules, said Gretchen Hamel, a spokeswoman for the U.S. Trade Representative's office from Washington. "We are still willing to negotiate."

While the European Commission, the EU's executive arm, also has said its still prepared to find a negotiated solution, efforts stalled earlier this year over the negotiating terms.

Wednesday's filing sets a deadline for any talks, Ted Austell, Boeing's vice president for international policy, said Wednesday in Geneva.

"The submission sets the clock ticking and this should focus the parties on whether there's any prospect for a negotiated settlement," he said. "While we still prefer a negotiated solution, there has been no indication that the commission or the Airbus partner governments are prepared to end launch aid."

Peter Power, a commission spokesman in Brussels, didn't immediately respond to a request for comment.